China Proposes Economic Plan

With the current state of the world economy, China has decided to enact a broad stimulus package that, will in theory, not only help their slowing economy, but also help to jumpstart the global economy. The New York Times reports that China will "spend an estimated $586 billion over the next two years — roughly 7 percent of its gross domestic product each year — to construct new railways, subways and airports and to rebuild communities devastated by an earthquake in the southwest in May." This huge investment in infrastructure would not only improve the quality of infrastructure in China, but also create many jobs for this extensive effort. China is trying to be proactive and not enter into a recession like the United States and some of Europe have encountered. Many analyst are suprised by the size of the package that China has approved. While some analyst still remain skeptical on whether such a plan will work or not, many Chinese officials are projecting huge economic gains from such a plan, and they belief that this plan is just what China needs to get back on track.